About this Video

• Video Title: Should investors consider buying amid volatility?
• Channel: Fox Business
• Speakers: Liz, Steve (Investment Officer)
• Duration: 00:06:55

Introduction

This Fox Business video features an interview with an investment officer managing $830 billion in assets. The discussion centers on whether investors should buy stocks amidst market volatility, considering recent market drops and predictions for future market behavior. The expert offers advice on strategic investment approaches.

Key Takeaways

• Market Timing: The investment officer is not currently buying, but is waiting for specific market milestones (around S&P 500 4950-5000) before adding to their positions. A purchase was made two weeks prior to the interview.
• Investment Strategy: The recommended approach is a balanced portfolio with both defensive and offensive components. Defensive plays include dividend-producing stocks from stable, large companies. Offensive plays involve riskier, currently undervalued tech stocks.
• Market Outlook: A "soft patch" is anticipated in the latter half of the year due to tariff uncertainty, softening employment, and inflation. The Fed is expected to cut rates by June if economic conditions soften.
• Fed's Actions: The investment officer believes that Fed Chair Powell is too reactive, focusing on past data rather than anticipating future trends. They suggest that Powell will eventually cut rates as economic data turns.
• Earnings Reports: Upcoming earnings reports are considered "rearview mirror" looking, as guidance is being pulled due to inflation.

The investment officer considers the 10-year Treasury yield stabilizing around 4% as a key milestone. They believe the yield should trade around 4%, relative to its normal trading range and to the long-term inflation rate. They anticipate it will likely end up between 3.5% and 4%. They are concerned about the bond market backing up, viewing it as a source of instability linked to confidence in the Fed, hedge fund unwinding, etc.